Fanning the flames? How media coverage of a price war affects retailers, consumers, and investors

Name: Fanning the flames? How media coverage of a price war affects retailers, consumers, and investors
Author: Heerde, H. J. van, Gijsbrechts, E., Pauwels, Koen Hendrik

İsim	Fanning the flames? How media coverage of a price war affects retailers, consumers, and investors
Yazar	Heerde, H. J. van, Gijsbrechts, E., Pauwels, Koen Hendrik
Basım Tarihi:	2015-10
Basım Yeri	- American Marketing Association
Konu	Media coverage, Price war, Retailing, Hierarchical Bayes, Time series econometrics
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0022-2437
Kayıt Numarası	c22d56b9-fad7-4fc2-97a6-73d0145828d5
Lokasyon	Business Administration
Tarih	2015-10
Notlar	Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Örnek Metin	This article explores how media coverage of a price war affects customer, retailer, and investor reactions over time. Using data covering a Dutch supermarket price war (2003–2005), the authors find that price reductions, especially deep reductions, trigger media coverage of the price conflict. This sets off a chain of reactions. Press messages have a significant effect on market share and abnormal stock returns, beyond retailers' own price and advertising. Importantly, this study uncovers striking asymmetries regarding the kind of coverage to which stakeholders react: whereas consumers only respond to the tone of price-related press coverage, retailers and investors only react to its quantity. Next, media coverage feeds back into the retailers' pricing actions: more media coverage triggers new price cuts in addition to those dictated by competitive reactions. As such, media coverage triggers a deeper spiral of price cuts, intensifying the competitive price battle. However, as the price war progresses, media coverage becomes less frequent and less favorable, which decelerates the downward price spiral.
DOI	10.1509/jmr.13.0260
Cilt	52

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Fanning the flames? How media coverage of a price war affects retailers, consumers, and investors

Yazar Heerde, H. J. van, Gijsbrechts, E., Pauwels, Koen Hendrik

Basım Tarihi 2015-10

Basım Yeri - American Marketing Association

Konu Media coverage, Price war, Retailing, Hierarchical Bayes, Time series econometrics

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0022-2437

Kayıt Numarası c22d56b9-fad7-4fc2-97a6-73d0145828d5

Lokasyon Business Administration

Tarih 2015-10

Notlar Due to copyright restrictions, the access to the full text of this article is only available via subscription.

Örnek Metin This article explores how media coverage of a price war affects customer, retailer, and investor reactions over time. Using data covering a Dutch supermarket price war (2003–2005), the authors find that price reductions, especially deep reductions, trigger media coverage of the price conflict. This sets off a chain of reactions. Press messages have a significant effect on market share and abnormal stock returns, beyond retailers' own price and advertising. Importantly, this study uncovers striking asymmetries regarding the kind of coverage to which stakeholders react: whereas consumers only respond to the tone of price-related press coverage, retailers and investors only react to its quantity. Next, media coverage feeds back into the retailers' pricing actions: more media coverage triggers new price cuts in addition to those dictated by competitive reactions. As such, media coverage triggers a deeper spiral of price cuts, intensifying the competitive price battle. However, as the price war progresses, media coverage becomes less frequent and less favorable, which decelerates the downward price spiral.

DOI 10.1509/jmr.13.0260

Cilt 52